Friday, February 27, 2015

Gbpusd: The Power of the Diagonals

How do you see an ending diagonal in a lower time frame confirming the termination of another ending diagonal in a higher time frame confirming the termination of a zigzag correction in a much higher time frame?

When this happens, one should expect a spike movement in the other direction . This is what happened on 26th Febraury 0n Gbpusd. Wow! it was sweet!.

I shared it here, you scrolled down the blog, its not far.

I Had two trade plans, one was aggressive ( break of 15 minutes ending diagonal) and the other was conservative ( break of the 1 hour ending diagonal).

The aggressive was triggered and 60% of it was closed at a profit of 100pips risking just 45pips.

For the conservative plan, I will wait till the 1 hour diagonal is broken downside and retraced to form a swing close to its break point and ride down in an expected massive move.

As more price gets on the way, market structure becomes clear. Until a reliable pattern is completed, no trade.